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By Michael Herskovich, Head of Corporate Governance, BNP Paribas Investment Partners
To facilitate and promote long-term investment, the European Commis-sion is proposing(1) to amend the Shareholder Rights Directive(2). Transpa-rency and greater shareholder involvement are at the core of the proposal that would mark a new era in corporate governance and the engagement of asset owners and asset managers in Europe.
Background
The scale and impact of the financial crisis led regulators around the world to question the effectiveness of current corporate governance practice. While not a primary cause of the crisis, the lack of adequate control mechanisms contributed significantly to excessive risk-taking on the part of financial...
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